The fact that I’m putting out advice on staying on top of your insurance policies would make it look like I was the super-responsible type. Well, let’s say that I’m qualified, only because I learned a few lessons in the school of hard knocks. I’m completely susceptible to the temptation of letting sleeping insurance policies lie myself. Reading and understanding policy boilerplate is an experience that should unnerve most. But as with most of these things, it’s an inevitable in life, and the sooner you’re done with it, the better. There are two fundamental reasons why you need to keep reviewing your insurance policies. The first is, that you keep moving up in life. You make additions to your home, you buy new stuff, and sometimes, there’s a new member to the family. Your policies need to keep up with these changes. And then, there’s the fact that there are new and cheaper policies out there every day. Each time you are able, looking for a better deal is almost always a great idea. Let’s look at some of the benefits there are to reviewing your insurance policies once in a while.
Anytime you’re up trying to launch a late-night show, you can’t avoid having some auto insurance salesman sticking his face in the camera to tell you that no one beats his prices… but no one! That may be true with the kind of prices they charge; but it’s well possible that for their lower prices, that they’re giving you less protection on their insurance policies. For instance, what if they raise your car insurance deductible to $900 in return for an insurance premium that will cost you $50 less? This is why you need to get eyestrain reading the policy through. If you keep renewing your car insurance policies you got made when your children were driving your car (before they left for college), you need to go ask for a reassessment, because teenage drivers routinely raise your rates. Or if you have a new job that lets you cut down on the commute by working at home, that will lower the rates too. And make sure that you have uninsured motorist coverage too. Just imagine, a quarter of all drivers in California have no insurance. If you get tangled up in an accident with a driver like that, you have nothing coming to you. Uninsured motorist coverage makes sure that you’re covered, no matter what.
People get the wrong idea about reviewing their insurance policies sometimes though. Everyone knows how the recession has driven down prices of homes. What you paid $250,000 for 10 years ago, could well have lost value now. So they figure that they could save some money by buying less coverage. There’s a little problem with that line of thinking sthough. Selling the house does bring in less now; but fixing repairs from damage does not cost less. Raw materials have risen in price over the years, and so have the prices of every single thing that decorates the interiors. If you just remodeledyour kitchen and put in beautiful countertops and better appliances, those raise the value of your home too.
Actually, you need to pay a little extra attention to the contents of your home. If you just bought standard personal property insurance that would cover you for maybe $40,000, think of how quickly you can overrun that when you buy a couple of new flat screens for your home, a Viking range, a couple of laptops or a new furnace? Any time you buy stuff that adds up to $5000 for your home, you need to make a call to update your insurance policies.
While you’re at it, you may want to think of whether you want an umbrella policy. There are a number of ways in which you could be sued by people for instance, and an umbrella liability policy would be a great thing in that event. If there is a guest who comes to party, and crashes his car into someone on your driveway, you could get sued. It could cover you against everything that these regular policies don’t cover. It simply isn’t any fun going into this kind of detail, and that’s why most people avoid these responsibilities for as long as they can. What does one say? Life rewards you the best when you deal with the boring stuff.